After a company identifies potential risks, it must measure those risks. Epstein and Buhovac (2014, p. 185) identified a seven-stage process for measuring those risks. Calculate the benefit associated...

After a company identifies potential risks, it must measure those risks. Epstein and Buhovac (2014, p. 185) identified a seven-stage process for measuring those risks.

1. Calculate the benefit associated with each issue that may generate risk.


2. Calculate the potential costs for each and include reputation risks.


3. Estimate the probability that the risks will happen.


4. Multiply the potential cost by its probability to determine the expected value of each risk.


5. Estimate when the risk may happen and calculate NPV.


6. Add the NPVs of all risks and add as a line item in ROI.


7. Calculate expected value of ROI.

Consider a Saudi business and the risks it faces. Describe these and then address how the company might estimate the probability the risk will happen.

• Embed course material concepts, principles and theories, which require supporting citations along withat least one scholarly peer reviewed reference in supporting your answer unless the assignment calls for more. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.


• You need to reply to at least two peers’ discussion question post answers to this weekly discussion question. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peers’ replies but is expected throughout the course. Answering all course questions is also required.


• Use Saudi Electronic University academic writing standards and APA style guidelines.

Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.